Bankruptcy: Proof of Claim-Judgment

The bankruptcy court allowed Lariat’s claim against debtor and rejected debtor’s argument the claim had been paid in full by debtor’s spouse.

Where Lariat’s claim against the debtor flowed from a guaranty judgment it previously obtained, which was extinguished by the payment made by debtor’s spouse, Lariat no longer had a claim against debtor.

Vacated and remanded.

Lariat Companies, Inc. v. Wigley (MLW No. 72304/Case No. 18-6004 – 8 pages) (U.S. Bankruptcy Appellate Panel for the Eighth Circuit, Nail, J. ) Appealed from U.S. Bankruptcy Court for District of Minnesota